The European Union has apportioned €2.3 billion euros (US$3.14 billion) of investment in gas pipelines and power cables to support Europe's energy security.
The European Commission will grant €910 million for 12 electricity interconnection projects and €1.39 billion for 31 gas pipeline projects. By co-financing up to 50% of these projects, the EU will help relieve the private sector of up to €22 billion of investment. The €2.3 billion will be distributed to project developers over the next 18 months.
It is the largest amount the EU has ever spent on energy infrastructure and comes as part of a €4 billion package of unspent EU budget, which will be used to stimulate the economy and create jobs amid the recession.
Gas and power connections have received priority funding, following a pricing dispute between Russia and Ukraine, which cut supplies of Russian gas to Europe a year ago. It is hoped that the funding will significantly contribute to economic recovery in the EU, while increasing security of energy supply by creating cross-border infrastructure. Developments will include projects for reverse flow in nine member states and the Nabucco and Galsi projects to diversify gas imports.
In December, €1 billion was assigned for pioneering technology to trap and bury carbon emissions from power stations, and €565 million was allocated for offshore wind farms.
The electricity and gas development projects selected for funding are hoped to create a better interconnection between all EU member states and to reduce the isolation of remoter parts, such as the three Baltic States, Ireland and Malta.